CIC Services, LLC, a Knoxville-based risk management consulting firm specializing in captive insurance, announces a game-changing new program that opens the door to captive ownership for small to mid-sized companies that would otherwise not be large enough to consider replacing commercial insurance with a captive.
The CIC Services Bundled Program allows an insured business to reinsure their current commercial insurance premiums and retain up to 40 percent of the premium or risk and also retain their existing insurance broker without sacrificing coverage.
Captive insurance is a formal method of self-insurance that enables businesses and business owners to keep all or a portion of insurance profits. Insurance profits can be invested and carry over from year-to-year, making the captive stronger financially and helping control the cost of traditional insurance. Captives can often receive favorable tax treatment to help them quickly accumulate assets and loss reserves.
The CICS Bundled Program makes a captive insurance company a viable option for many mid-market companies that may not have previously been candidates for a captive program. Operating in concert with an A+ rated carrier, experienced underwriters and third-party actuaries, the CIC Services Bundled Program allows a business to own a captive insurance company without the high transactional costs and minimums that have typically closed the door to self-insurance for smaller companies.
Businesses that participate in the Bundled Program are not required to purchase a fractional share of an already establish group captive. Each participating business owns and controls 100 percent of their individual captive insurance company.
"The Bundled Program is a revolutionary opportunity for both insured businesses and their insurance brokers to look to replace coverages from the traditional insurance market," said CIC Services Director of Operations Nate Reznicek. "Business owners and their trusted brokers now have a proven method in which to participate in their risk and recoup significant amounts of underwriting profit without sacrificing coverage, limits, or the credibility of carrier rating."
Designed to match rate, limits and policy language for existing commercial insurance policies, the insured business or captive owner is able to retain anywhere from 10 to 40 percent of the premiums and risk. The policies are issued by the A+ rated carrier who also provides integrated reinsurance, providing seamless coverage and protecting the captive insurance company and business owner from catastrophic loss.
As the captive is wholly owned by the business owner, they also retain 100 percent of the underwriting profit (premiums received minus the claims and expenses) significantly reducing the net cost of the businesses' insurance program.
The Bundled Program can be an ideal fit for the following businesses:
Businesses that have a proactive risk management and loss control program
Businesses that continue to pay increasing commercial insurance premiums with a low claims experience
Businesses that pay a total of at least $250,000 in combined property and casualty premiums
Businesses interested in pursuing the Bundled Program can contact CIC Services for an initial no-cost analysis of their current insurance program to help determine if owning a captive insurance company through the Bundled Program is the right fit by visiting the CIC Services website at captivatingthinking.com or calling (865) 248-3044.